Item 5 Supporting Document — original pdf

Backup

Rally Austin Update March 2025 Commissions WHO WE ARE MISSION Facilitating equitable development for economic growth while preserving Austin's unique culture. VISION A culturally resilient and economically integrated Austin where diverse communities thrive without risk of displacement. LEADING INVESTMENTS IN OUR COMMUNITY, AS A COMMUNITY Rally will focus its efforts to unite and drive progress across three critical areas of development in Central Texas: ARTS, MUSIC & CULTURE COMPLETE COMMUNITIES CATALYTIC DEVELOPMENT 2 WHO WE ARE OUR COMMUNITY AT WORK Board of Directors Collaboration of community leaders and nominating bodies who represent local organizations and asset holders. 7 City Of Austin Representatives: • Music Commission • Arts Commission • Historic Landmark • +City Directors 3 INVESTMENT HIGHLIGHTS RALLY AUSTIN MILESTONES Council begins to explore collaboration Austin Economic Development Corporation established Signed Interlocal agreement for initial projects 21-person board created, CEO and Staff search begin Strategic Plan provides Board Structure and Mission $2.4M for two creative space projects on City owned property AEDC recognized as 501c3 Non- Profit Organization $4.5M announced for Austin Playhouse $1.6M Iconic Venue Funding for The Hole in the Wall AEDC rebrands as Rally Austin Austin City Council Approves Developer Selection, Urban Renewal Agency recommendation for Blocks 16 & 18 $2.5M for Museum of Human Achievement Council approves a 30% increase in the Interlocal Agreement 2014 2020 2021 2022 2023 2024 Arts, Music & Culture Complete Communities Catalytic Development 4 DEVELOPMENT FOR PURPOSE Critical Areas of Development for Central Texas COMPLETE COMMUNITIES ARTS, MUSIC & CULTURE CATALYTIC DEVELOPMENT 5 DEVELOPMENT FOR PURPOSE BLOCK 16 & 18 EAST 11th ST Development of complete communities that improve quality of life for Austinites and focus on equitable development in underserved areas. Blocks 16 & 18 in the African American Cultural Heritage District with the Urban Renewal Board Philanthropic partnerships with Wells Fargo, C3 Presents, and Six Square “ We are proud partners of the Rally Austin team and their transformative work ensuring communities throughout Austin can flourish. — CHRIS RIOS, WELLS FARGO REGIONAL VP OF PHILANTHROPY & COMMUNITY IMPACT ” 6 DEVELOPMENT FOR PURPOSE ARTS, MUSIC & CULTURE AUSTIN CULTURAL TRUST IMPACT $11M in five projects valued at $24.2M $11M $24.2M $48.4M to $60.5M Rally Investment Project Value Projected Economic Impact INVESTMENTS $1.6M Hole in the Wall $2M Permitting and Development Center $400K Millenium Youth Entertainment Complex $4.5M Austin Playhouse $2.5M Museum of Human Achievement $400K Millennium Youth Entertainment Complex 7 INVESTMENT HIGHTLIGHTS ACTIVE COMMUNITY INVESTMENT PORTFOLIO Rally Austin’s portfolio of real estate projects is valued at approximately $152.2M, providing an estimated 277,500 square feet of affordable space: • 180,000 SF Affordable housing • 70,500 SF Cultural spaces • 14,000 SF Commercial spaces • 13,000 SF Outdoor and shared spaces include mixed-use development in the Key projects African American Cultural Heritage District and securing a long-term lease for The Hole in the Wall. Arts, Music & Culture Complete Communities Catalytic Development AUSTIN PLAYHOUSE PERMITTING AND DEVELOPMENT CENTER HOLE IN THE WALL MILLENIUM YOUTH COMPLEX BLOCKS 16 & 18 MUSEUM OF HUMAN ACHIEVEMEN T 8 CULTURAL TRUST Y C A C O V D A A LONG HISTORY! Imagine Austin: Priority Program 5 Creative Economy Thriving in Place report to promote creative spaces Creative Spaces Bond passes Creation of AEDC (Rally Austin) referencing Cultural Trust . • 2012 • 2018 • 2018 • 2020 • 2020-22 COVID Pandemic restrictions on venues • 2021 • 2021 • 2021 Austin economy grew significantly between 2012-2022, increasing real estate pressure on creative and non profit sector, as well as music venues. COVID exacerbated an already vulnerable system. This vulnerabilty is not just a loss of local businesses, or an inevitability, but the loss of the City’s AUTHENTICITY & IDENTITY. Arts & Music Commission Joint Recommendations AEDC ILA Addendum 2 & 3 (Creative Spaces Bond & Iconic Venue) LAUNCH of Cultural Trust via RFP with new staff Y T I N U M M O C 10 CULTURAL TRUST PROGRAM PRIORITIES • • Facilitating the acquisition and preservation of existing as well as the creation of new cultural arts and music venues • Achieve diversity, equity and inclusion Provide permanent affordability for cultural and creative purposes. • Create a sustaining pipeline of Cultural Trust infrastructure as funding sources continue to become available. Creative offerings such as Theater, Dance, Visual Art are also in crisis. 2 COMMUNITY CENTERED CULTURAL TRUST ADVISORY COMMITTEE Open Committee of the Board of Directors Committee helps inform the process, needs, and helps network the various Cultural Trust activities to various organizations and stakeholders. 12 FUNDING DETAIL CULTURAL TRUST PUBLIC FUNDING SOURCES The City of Austin seeded the funding. • Additional funds are leveraged within the individual projects. Each source has different ‘strings attached’ and a significant amount of time has been spent to see how the funding could apply . The program moving forward needs more flexible dollars. There are no funds identified for operating costs • • • • 12 M Creative Spaces Bond Fund • General Obligation City-Issued Bond requirements • Limited to Acquisition & Development • Complex deal structure required for City investment 2.4 M HOT Iconic Venue • Acquisition, development, and means necessary to secure the space • Requires ‘Tourism’ function • ‘Historic Zoning’ for property tax relief • Council approval not required 5 M COA Budget – Iconic Venue • 15 M total over many years • More flexible than HOT funds • Council approval not required 13 CULTURAL TRUST MILESTONES RALLY AUSTIN MILESTONES 2018 Bonds 2020 Iconic Venue Fund Austin Economic Development Corporation established Signed Interlocal agreement for initial projects 21-person board created, CEO and Staff search begin Council begins to explore collaboration COA Efforts 10+ Years! Request for Proposal Strategic Plan provides Board Structure and Mission $2.4M for two creative space projects on City owned property AEDC recognized as 501c3 Non- Profit Organization $4.5M announced for Austin Playhouse $1.6M Iconic Venue Funding for The Hole in the Wall AEDC rebrands as Rally Austin Austin City Council Approves Developer Selection, Urban Renewal Agency recommendation for Blocks 16 & 18 $2.5M for Museum of Human Achievement Council approves a 30% increase in the Interlocal Agreement 2012-2019 2020 2021 2022 2023 2024 Arts, Music & Culture Complete Communities Catalytic Development 14 PROCESS DETAIL PROJECT IDENTIFICATION Program alignment projects projects Feasible deal structure-legal Feasibility due diligence Feasible for all parties: City, Property Owner, Organizations Projects 45 Submissions Long List Prioritized projects for due diligence Shortlist Organized by feasibility and investment size 2-6 Projects/Initial Investments (6+ Organizations) 15 CURRENT PORTFOLIO: 6 PROJECTS/7 ANCHOR ORGANIZATIONS Design Construction Post Construction Agreements Agreements Pre Construction PDC Millennium Playhouse MOHA Empire 2 M Bond 400 K Bond 4.5 M Bond 2.5 M Bond 2.2 M Investment • Rude Mechs • Bat Cave • Theater renovation • Capital Project • Capital Project • Acquisition Loan Hole in the Wall 1.6 M Investment • Capital Improvements • Rent Stipend Rally Austin Cultural Trust | 10.2.24 16 BACKGROUND RESEARCH INAUGURAL AFFORDABILTY SURVEY Pilot effort, designed to help shape the upcoming pricing guidelines for cultural trust spaces: Distributed to 800+, EDD Newsletter, Social Media Responses to two surveys: • • 26 Venues 79 Renters Provides good data to help ascertain ‘common practices’ by venues Help inform ‘market’ rates for rentals, to support creation of ‘assuring affordability’ practices and guidelines Provides insight into market vulnerabilities of venues and renters Identifies needed spaces • • • • • • 17 BACKGROUND RESEARCH WHO RESPONDED? • • • • 40% had been in business for over 20 years. 73% of the venues responding supported performing arts, while 40% of respondents supported music and visual arts. 80% of venues rent their space (do not own). VENUES: RENTERS: 53% were non profit organizations Approximately 50% Individuals/50% Organizations. • • • • • 44% identified themselves in the theater arts category, with 21percent for painters/illustrators, and 17% were dancers. musicians at about 10%. Approximately 37% derive 100% of their income from their creative work, while about 28% derive about 25% of their income from their creative work. 44% of respondents said that approximately 25% of their income goes to space rentals (22% said that 50% goes to space rentals). 43% of renters were folks who rent on an 'as needed basis', and the majority said that cost was the major determining factor in selecting a space 18 2026 BOND ELECTION 2026 Bond Proposal-Programs Complete Communities: Engaging communities with Equity, Affordability and Innovative practices Legacy Business Preservation and Commercial Trust Arts, Music & Culture: Proactive preservation for Affordability Expansion of the Cultural Trust Catalytic Development: Sustaining innovative long- term resilient investments Affordable Workspace and Workforce Initiative 20 Rally Austin 2026 Bond Proposal